From Philanthropy to CSR to Creating Shared Value...

There is an ever growing awareness about social challenges for which governments and NGO's lack sufficient capabilities to fully meet them. At the same time, Companies or Businesses are perceived to be prospering at the expense of the broader communities despite increasing CSR activities.

Harvard Professor Michael E. Porter and Mark Kramer came up, in the 2011 McKinsey award winner HBR article, with the concept of Creating Shared Value. Let's have a close look what this is all about. What is the role of companies in communities and how is it evolving?

Prof. Michael Porter's evolution model

It started with Philanthropy

It's harder and harder to do pro-public business activities because supporting business is viewed as a questionable activity. Business has been trying to address these issues with philanthropy. In fact, the first response to business to these societal issues is philanthropy.

Twenty years ago was the question to corporate/companies of "what percentage of your profit do you give to support society? In India they have even passed a law on this with a strong recommendation that businesses should give 2% of their profit to philanthropy, if they don't, they have to say why.
Philanthropy is good. A place to start but philanthropy is not enough... simply because there is not enough money!

The next step is Corporate Social Responsibility (CSR)
CSR is more than just philanthropy, but it includes philanthropy; compliance, understanding the communities standards, citizenship, being a good corporate citizen, and "sustainability" which means a lot of different things that it's hard to define sometimes. It's clear about environmental sustainability but less clear about a broader sustainability. Many corporates have many CSR activities but they do it to be considered a good corporate citizen only.

The next step is Creating Shared Value (CSV)
The more we learn about poverty, healthcare, water, nutrition, about societal issues, the more we see opportunities to use economics or new business models to address these societal issues. Shared value is about creating new markets, new opportunities for growth, and new ways to improve productivity. With CSV, opportunities for disruptive innovations will proliferate. Capturing  these opportunities will require new thinking about market segmentation, customer segmentation,  supply chain management, human resource management, and other management disciplines. Some companies are already redefining strategic positioning around a shared value mindset.

Aligning strategic positioning with shared value opens up fundamentally new ways of thinking  about the business. Shared value opens up a new and far broader opportunity set for companies. Companies that create shared value will gain competitive advantages and superior performance. Finally, it's important to mention here that Shared Value is not about triple bottom line. 

Ericsson's Networked Society vision, a great opportunity for redefining the 'Economic Value' ?

In recent years business has been viewed as a major cause of social, environmental, and economic problems. The simple act of profit maximization was good in itself; what was good for business was good for society. We have seen the effect of business practices on healthcare, environment, the mortgage crisis; example after example where a whole society has been dramatically hit and left traumatized.
Profit is not inconsistent with society needs, but there is an increasing belief that this profit is made at the expense of the society.

In 2010, The World Health Organization has spent 5BUSD to deliver healthcare solutions to the world. The same year, a global corporation has spent 25BUSD to deliver potato chips to the world. Corporations are incredibly powerful at delivering solutions to problems but they make absolutely no value judgment about which problems they’re going to solve.

Ericsson picture

The Ericsson's Networked Society, through its wider and broader impact on the business landscape, leading to business transformation, industry shift and disruptive innovations, could be a tremendous opportunity for a new business practice that creates simultaneously economic and societal value.

It only takes 5USD to help a woman in a small village to start her own business, begin the process of learning to read and receive basic healthcare services.

It has never been so easy and so ‘cheap’ to startup a new business. Through the increasing number of connected devices, combined with a performing mobile broadband infrastructure and cloud technology, a large number of data and information is available for processing. To prevent disasters, fight poverty, empower women in poor countries. The sky really is the limit for sustainable business innovations that definitely generate profits for shareholders and at the same time create thick societal value.

I truly believe that this Networked Society vision can be a driver of economic growth and societal development in this all communicating world…

Smartphones & Mobile Broadband: a powerful combination for Business Innovations

Control your blood alcohol BREATHALYzER with YOUR SMARTPHONE!

photos: AndroMC

Technology - The solution consists of a small reusable box to connect to an iPhone or an Android smartphone with an app.

In France since July 1, it is mandatory to have a breathalyzer (Alcohol tester) in his car. Car drivers have the choice between two alternatives: the disposable one of 2 euros or an electronic device priced more than 100 euros now. It will be much cheaper with larger sales volumes.

AndroMC Systems has worked on a solution associated with a smartphone, which is widely used in France. This company has developed the B-test, a breathalyzer that plugs into an IOS or Android smartphone, and it is associated with an application.

The principle is simple: you plug the reusable housing on the charging port and blow in it and the app indicates whether you are fit to drive. If not, the app may even find another means of transportation in the neighborhood, or call a cab for you. This product has been awarded prevention label by a big insurance company. But to be legal, it must receive approval from the state. If this happens, it will be launched at the end of the year.

The combination of smartphone and Mobile broadband connectivity is becoming a driver of new business innovations, that will lead to economic growth, social empowerment and without any doubt to many surprising disruptions.

If you don't disrupt yourself, you will be disrupted!!

Products find a certain market only when they help customers get done the jobs that they already have been trying to do

"Marketers should think less about market segments and more about the jobs customers want to do..." 

This is what Harvard Professor Clayton Christensen affirms! Does it ring any bell to you? Do you have to go back to college and check all the marketing material again? No, you don't.
This idea of understanding the job-to-be-done by the customer rather than the customer himself comes from results of research conducted by Clayton.

"The idea that we should focus on understanding the customer and give the customer what she needs actually contributes to the failure of new innovations. The unit of analysis in coming up with great ideas are the jobs that are sitting out there needing to get done for which our products or services might get hired"


"Products find a certain market only when they help customers get done the jobs that they already have been trying to do"

Listen to Clayton Christensen Milkshake example:

 "I wonder what job people hire a milkshake to do for them..."
"...it turns out that the competitor is not Burger King milkshakes but bananas, donuts, bagels, and snickers bars"

What are the personality traits of top sales people?

Steve W. Martin presents in his recent HBR blog interesting findings from the results of personality tests he presented to high technology and business services salespeople as part of sales strategy workshops he has conducted. Below, I have summarized and copied the main key personality attributes of top salespeople and the impact of the trait on their selling style.

 .

1. Modesty. 91% of top salespeople had medium to high scores of modesty and humility.
Selling Style Impact: Team Orientation. top salespeople position the team. You dont have to be arrogant and selfish to be a top sales person

2. Conscientiousness. 85% percent of top salespeople had high levels of conscientiousness. Have a strong sense of duty.
Selling Style Impact: Account Control. Top salespeople take command of the sales cycle process.

3. Achievement Orientation. 84% of the top performers are fixated on achieving goals.
Selling Style Impact: Political Orientation.They strategize about the people they are selling to and how the products they're selling fit into the organization instead of focusing on the functionality of the products themselves.

4. Curiosity. 82% of top salespeople scored extremely high curiosity levels.
Selling Style Impact: Inquisitiveness. An active presence drives the salesperson to ask customers difficult questions.

5. Lack of Gregariousness. Top performers averaged 30% lower gregariousness than below average performers.

Selling Style Impact: Dominance. Dominance is the ability to gain the willing obedience of customers such that the salesperson's recommendations and advice are followed.

6. Lack of Discouragement. Less than 10% of top salespeople were classified as having high levels of discouragement.

Selling Style Impact: Competitiveness. Top performers are able to handle emotional disappointments, bounce back from losses.

7. Lack of Self-Consciousness. Less than 5% of top performers had high levels of self-consciousness.

Selling Style Impact: Aggressiveness. Top salespeople are comfortable fighting for their cause, action-oriented and unafraid.

Reference: Steve W. Martin teaches sales strategy at the USC Marshall School of Business. His latest book on sales linguistics is Heavy Hitter Sales Psychology: How to Penetrate the C-level Executive Suite and Convince Company Leaders to Buy.

Market Segmentation? Product vs Job-to-be-done

"Marketers should think less about market segments and more about the jobs customers want to do..."
This is what Harvard Professor Clayton Christensen affirms! Does it ring any bell to you? Do you have to go back to college and check all the marketing material again? No, you don't.
This idea of understanding the job-to-be-done by the customer rather than the customer himself comes from results of research conducted by Clayton.

"The idea that we should focus on understanding the customer and give the customer what she needs actually contributes to the failure of new innovations. The unit of analysis in coming up with great ideas are the jobs that are sitting out there needing to get done for which our products or services might get hired"

Listen to Clayton Christensen Milkshake example:

 "I wonder what job people hire a milkshake to do for them..."
"...it turns out that the competitor is not Burger King milkshakes but bananas, donuts, bagels, and snickers bars"

The new age of MOLO has come!

What are the different ways that companies are thinking about linking those two things: the ad or the offer, and the payment, and how does mobile change that?

 

Google has "a lot" of experiments in this area (Google has recently hired two senior managers from PayPal, who were working on mobile commerce services.). On May 27th PayPal filed a lawsuit against Google and two of its executives for stealing trade secrets! to be continued...

Google considers NFC (Near Field Communication) technology as an important opportunity for Android, and is making a big bet on it as a company. There is a lot of potential here.

What is Google belief on mobile commerce?
"we're going to see a real transformation in the mobile local space and how consumers interact with merchants, with service providers. We call it the age of MOLO - mobile local. And, we envision that consumers will be able to walk around and get offers nearby, and so we have several different offers products", said Google's VP of commerce Stephanie Tilenius at Techrunch Disrupt 2011.

She also announced a "mobile open and local" (MOLO) system for near-field communications (NFC) payments via smartphone, to be rolled out in New York and San Francisco for field testing.
Google is partnering with Citi Mastercard, Sprint and First Data to create a "Google Wallet" designed to integrate online payments and mobile shopping. The virtual wallet app will be available in the coming months through major retail partners which include Macy's, Walgreens, Subway, and Toys R Us.
The company stated that it is in negotiations via its partners with thousands of retailers around the globe to create an ecosystem for the Google Wallet.

There is a ton of activity around NFC in international markets, as an example, a successful trial of the technology that Starbucks ran in London. 

Not to mention that Mobile payments have been used for many years now in Japan.

Will it take off in europe and the US? I believe it will, it's just a matter of time to find the right model.

goRaiseFund.com, a brillant Internet Service idea, for individual fundraising

goRaiseFund.com

iInnov, a Sweden-based Internet Innovations company has launched recently - a brillant idea - with goRaiseFund.com, a new free internet service that allows individuals (and organizations) to raise funds; simply, conveniently and affordably. The service provides a social network platform for fundraisers worldwide as well.


Why is it a brillant idea? there are several reasons...

1. The service expands the community of fundraisers: Effective fundraising will no longer be the exclusive activity of NGO's, big organizations/institutions like UNICEF, the Red Cross, and other organizations.
   The service of goraiseFund.com allows any individual to login and to create his/her own fundraising project to support his/her cause.
   
   
2. The service expands the objectives of the fundraising act: Fundraising is mainly known as a tool for humanitarians. The service of goraiseFund.com provides the possibility to any individual to raise funds. The cause does not matter.
   As shown on goraiseFund.com website, you can raise fund to buy a $500 birthday gift to your grandma who will turn 80 soon.Similarly, You can raise fund to support your best friend's parents with the expenses of the coming expensive surgery operation of your best friend.
   
   
3. The service creates a worldwide community of fundraisers: The service will create ties between all the fundraisers worldwide, as it offers a complete social network platform with all the needed functionality like email, chat, sharing of photos, videos, articles, etc...

The sky is the limit!

• Every fundraising project created still needs the approval of goraiseFund webmaster before it is activated.
• The service is open to all population between 13-100 years.
  In fact the service is targeting the 13-30 years old segments.

No fundraising action is too small, every action matters, either by being fundraiser or donor you will make the world a little bit better!


Why not try it? Let your friends, family, sons and daughters support their cause! 
goraiseFund.com, your way to a better world... is also a very appealing slogan.

I will follow it...

Impact of Cloud Computing on the Telecom Sector

Cloud computing will most probably affect the telcos in three ways according to the available Business & technology litterature:

3way impact



Value chains

Today, a number of telecom companies are differentiating themselves from their rivals through their unique product offerings and bundling of services.

The Cloud providers can provide efficient services using telcos infrastructure, technology and procurement at a relatively reduced cost. The telcos can utilise the services of Cloud providers and, combined with telcos capabilities, offer advanced value proposition to their clients. The telcos have the potential to develop incremental revenue streams from the application providers and the application consumers. Through technological innovation, telcos will provide telecom services, application services and other data services.

Today, the telecom market is dictated by the consumers, due to increased competition and customer’s changing requirements. Besides having their primary focus on customer intimacy and relationships, telcos are looking to leverage on the operational excellence; and the adoption of cloud computing technology as a strategic move could be beneficial. This facilitates telcos to restructure their internal capabilities and infrastructure, to provide a cost-efficient solution to their customers.

Through innovation in technology, telcos have the opportunity to create new market boundaries and create new value curve with new portfolio. Telcos can become core ICT providers, a network-centric business through data centres, or service-oriented developments. Hence, the innovation in Cloud Computing can substantially affect the value chain of the telecom operations.

For e.g. AT&T, BT, Orange 

Operating Model

Cloud computing creates the need for new organizational structures and processes, and new strategies. Telcos are excellent in tightly managing their procurement process and negotiating longer term contracts with vendors and suppliers.The challenge for telcos will be to internally and externally decentralize purchasing and decision power because the essence of Cloud is agile service re-configuration and sourcing. Telcos will also have to take a fresh look at the level of ICT innovation. Telcos will have to align and adapt their organization by creating strong cross-functional interfaces and organization flexibility.

These changes have an imperative effect on the telecom operating model in the OSS (operating support systems) like Customer service operations and Network operations. The operational support services like order fulfilment, service configuration, resources provisioning and Invoice Billing are becoming increasingly complex with millions of subscribers involved with variety of products. Hence the operational cost to handle them is high. Further to that, the infrastructure needed to cater to the increasing customer base, can lead to increased financial overhead.

The implementation of Cloud computing incurs minimal capex as this infrastructure is owned by the cloud providers. This will lead to decreased capex, as these are converted into opex, thereby saving costs in the balance sheets, resulting in lower operating profit taxes.

The shift from a capex to an opex organization is leading to development of new business models. The telcos operating model has to be restructured in order to incorporate cloud computing.

The adoption of cloud computing can have a significant effect in the Strategy, Infrastructure and Operation by improving the cost structure through operational excellence and economies of scale.

Strategic Alliances

Implementing cloud computing technology paves way to strategic alliances between

Telecom and IT firms. Telcos have been considering in leveraging the economies of scale by sharing the infrastructure, particularly the network resources. Network sharing is gaining popularity as the drive towards cost-control intensifies and will continue to gain momentum as mobile operators seek to reduce their capex and opex burden, but the network itself will remain a key point of differentiation for operators.

The growth of the cloud is providing fertile ground for new forms of collaboration between vendors. Vodafone and Decho decided to offer both businesses and consumers cloud based backup services of allowing users to securely store their documents externally and be able to access them from a web browser from any device.

The IBM and Juniper relationship is another evidence of growing importance of the high performance network in the progression of data centres towards cloud infrastructure. Both companies agree that high-performance, secure network is vital to the operations of both the data centre (enabling service production) and the global network.

Forming strategic alliances with the cloud providers can help telcos to collaborate, and create a win-win working model through a portfolio of managed services. This will enable telcos to meet the new demands of their customers and will help them focus on their core competencies, and leave the backroom operations, and other non-critical services, to the cloud service providers.

More to come on this topic soon...


Founder & CEO goRaiseFund.com

Techcrunsh bound to be crunshed by AOL?

What's happening at Techcrunsh?


Techcrunsh blog became too big, too influential, particularly in the start-up business. 
Financial interests and conflicts between editorial management, who is accused of starting up venture capitals and promoting their own business via Techcrunsh editorial line, and Techcrunsh owners  are about 


to bring an end to a successful blog that became too big to be just a blog.

read moreTechcrunsh, the end?